Massillon City Council unanimously approves Heinz Co. tax credit

City council quickly moved Monday night to approve a job creation and tax credit agreement for H.J. Heinz Co., officially allowing the company to expand its existing operation.

BY Steven M. GrazierIndependent staff writer

City council quickly moved Monday night to approve a job creation and tax credit agreement for H.J. Heinz Co., officially allowing the company to expand its existing operation.

Council voted 9-0 to authorize the deal, as Councilman at-large Paul Manson, a Democrat, called the decision a “no-brainer.”

“They’re good for the city and one of our biggest employers,” Manson said.

Heinz is planning a $28 million expansion to its processing facility at 1301 Oberlin Road SW, an effort that aims to add 249 local manufacturing jobs over three years, beginning next year, and retain up to 450 existing positions.

“It’s a really good deal for us,” said Mayor Kathy Catazaro-Perry following council’s authorization.

The mayor and Community Development Director Ted Herncane last month helped to negotiate the deal with officials from Heinz.

“They (Heinz) could have gone anywhere, but staying here is really good for us,” added Councilman at-large Milan Chovan, a Republican.

The city is giving Heinz a nine-year job creation tax credit with descending percentages of credit throughout the term. The credit starts at 0.75 percent in 2014 and decreases to 0.25 percent by 2022.

Overall, Heinz is expected to save about $513,000 in income tax payments to the city over nine years, while Massillon is expected to garner nearly $410,000 over the same period.

Also Monday, the Ohio Tax Credit Authority was to consider unspecified state tax incentives for Heinz to assist in its Massillon expansion. However, no action was taken due to a lack of a quorum of board members, according to Stephanie Gostomski, a spokeswoman for the Ohio Development Services Agency.

The tax authority will reconsider the Heinz proposal during its next meeting slated for Jan. 27, Gostomski said.

In early November, Heinz announced the closing of two U.S. plants and another in Canada and will slash nearly 1,350 jobs to help the company operate more efficiently, according to an Associated Press story. The company is shifting production from the three locations to existing facilities, one of which is in Massillon.

Yearly rates for existing rec center members will rise Jan. 1, some by as much as 10 percent. Costs for new membership passes also are to increase at the start of next year.

Keeping up with payroll and contracts, in addition to paying more for supplies and equipment, are reasons for the rate hike, said Parks and Recreation Director Doug Nist.

Rates for family, individual, senior citizen, teenage and youth plans vary between city and non-city residents.

Contact the rec center at 330-832-1621 for more details.

OTHER ACTION Renewed a $15,000 purchase order limit for all city departments in the fiscal year 2014. The sole exception is the city’s wastewater treatment fund.

City Auditor Jayne Ferrero said the spending limit is for basic office supplies, materials and equipment.

DISCUSSION Debated whether to allow a 1989 Ford F350 ambulance to be sold to the Stark County Fire Department Rehab Unit, a volunteer group that provides food and water to safety personnel during a large fire or major catastrophe.

The city is considering selling the ambulance to the rehab unit for $1. However, some council members are questioning if scrapping out parts and materials of the vehicle might bring in between $1,000 and $2,000. They say the extra money could be useful due to the city’s financial crisis.

Chovan, who chairs the city’s police and fire committee, said he would attempt to get an estimated value of the ambulance prior to next week’s work session.

UP NEXT Meets at 6 p.m. Dec. 9 for a work session at the Massillon Government and Justice Center, 1 James Duncan Plaza SE. All meetings are open to the public.